Chapter 14 - Managing Promotion and Distribution

Question 1

Promotion Mix

Answer 1

APPS

To promote a product

Question 2

Advertising

Answer 2

Major Categories: outdoor, TV, newspaper, online, magazines, direct mail, radio.

Reach: Scale, Targeting, Choice, Accessibility

Question 3

Personal Selling

Answer 3

Face-to-face sales presentation to potential customer.

Prospecting (Personal Selling Process)
1. Prospecting
2. Approach
3. Present
4. Answer
5. Close sale
6. Follow-up

Question 4

Sales Promotion

Answer 4

Stimulates buying.

Methods:
-Coupons
-Samples
-Premiums
-Frequent-User Incentives
-Point-of-Purchase Displays
-Contests

Question 5

Public Relations

Answer 5

any communication or activity initiated by a company that is designed to win goodwill or prestige for a company or person

-Press release
-Press conference
-Event sponsorship

Question 6

4 Factors for Promotional Planning Tool Selection

Answer 6

1. Promotional Objective
2. Nature of Target Market
3. Characteristics of the Product
4. Organization’s Resources

Question 7

4 Common Used Channels of Distribution

Answer 7

1. Direct
2. Producer -> Retailer -> Customer
3. Producer -> Wholesaler -> Retailer -> Customer
4. Producer ->Agent -> Wholesaler -> Retailer -> Customer

Question 8

Benefits of Intermediaries

Answer 8

• Provide Efficiency and Assortment of Goods
• Break Bulk
• Provide Valuable Market Information
• Offer An Instant Sales Infrastructure

Question 9

3 Categories of Wholesalers

Answer 9

-Merchant
-Commission
-Brokers

Question 10

4 Common Features to Differentiate Various Physical Retailers

Answer 10

• Number of Product categories
  -Pricing
  -Distribution intensity
  -Size and selection

Question 11

Different Types of Retail Store Formats

Answer 11

-Department
-Discount
-Warehouse showrooms
-Convenience
-Supermarkets
-Superstores
-Warehouse clubs
-Traditional Specialty Stores
-Off-Price Retailers
-Category Killers

Question 12

Non-Store Selling

Answer 12

selling that does not take place in conventional store facilities; customers purchase products without visiting a store

Question 13

Direct Selling

Answer 13

selling that does not take place in conventional store facilities; customers purchase products without visiting a store

Question 14

Direct Marketing

Answer 14

Can occur through:
○ Catalogue Marketing
○ Direct-Response Marketing
○ Telemarketing
○ Television Home Shopping
○ Automatic Vending
○ Online Retailing

Question 15

Three Primary Functions of Physical Distribution

Answer 15

-Inventory Analysis
-Warehousing
-Transportation